It’s no secret that Google Inc. is a WiMAX supporter, as its investment in U.S. WiMAX operator Clearwire Corp. attests. Now, the Internet giant might be looking to snag some WiMAX spectrum for itself in one of the biggest markets of greenfield opportunity there is: India.
The Business Standard reported this week that Google is considering participating in the subcontinent’s January auction of 3G and WiMAX spectrum by partnering with an Indian firm. Rules for participation by foreign companies mean that Google would need to limit its stake in any joint venture to 74 percent. Alternatively, it could become an official technology partner for a carrier. Google hasn’t confirmed or denied the report.
But why, one may ask, would Google get into the operating game? One answer is that India’s broadband opportunity is a story of huge pent-up demand and potential growth. India’s communications regulatory body, TRAI, reports that there were a mere 5.45 million broadband subscribers in India at the end of 2008, out of the staggering 1.5 billion residents of the country. WiMAX and other wireless technologies are the obvious choices to get connectivity out to the underserved. As it stands, the country has only a 33.23 percent teledensity overall.
The other possible reason is that Google wants to promote the open mobile Web, which is the best avenue for it to capitalize on its cloud-based services. It has been doing so with high-profile moves where possible, like its planned participation in the U.S.’s 700MHz auction in 2008. It eventually chose not to bid, but its threat to do so was the linchpin for implementing an open-access mandate for a national block of spectrum. It could be that the company doesn’t plan to become an operator, but will rather use the Indian auction as a way to shine a spotlight on the idea of a global open network. The WiMAX spectrum sale, which has been postponed several times and is being watched worldwide, is now set for Jan. 14.
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